- The use of broker-provided execution management systems among investment managers is declining as trading strategies become increasingly sophisticated.
- Stand-alone order management systems lack the depth of functionality demanded by increasingly complex buyside business models.
LONDON – 08 February 2017 – A new report from GreySpark Partners, a leading global capital markets consulting firm, assesses nine technology vendor solutions that target the buyside multi-asset order and execution management system (OEMS) space. The vendors reviewed in the report are:
- Charles River;
- Portware; and
The report, Buyer’s Guide: Buyside Multi-asset OEMSs, sets out the breadth of functional coverage of the nine surveyed vendors – providing an assessment of the quality of the functionality as such a qualitative assessment can only reasonably be ascertained on a client-by-client basis, giving consideration to the unique requirements, current system state and target end state of each potential client. The functionality surveyed include:
- pre-trade tools and post-trade tools;
- order management and routing;
- market data and market connectivity;
- transaction costs analysis and risk management;
- straight-through processing;
- compliance; and
- portfolio analysis and P&L calculation.
GreySpark Partners believes that the investment management industry’s heightened interest in multi-asset OEMSs is a consequence of the emergence of large asset managers and hedge funds that are adopting multi-asset class trading strategies. These market participants demand real-time data analytics that integrate with OEMSs, risk management tools and TCA systems to generate a cross-asset, front-to-back office view of risk across the trade lifecycle. Additionally, GreySpark has observed that buyside firms are under pressure from regulations, tighter margins and cost cutting, which are driving their decision-making. Regulations – particularly those concerning trade and transaction reporting requirements, and increased operational compliance that require additional data generation and recording – are causing buyside firms to reassess their technology stack and the systems and processes in place.
GreySpark observe that buyside firms with assets under management of less than USD 100m, and which experience more acute resource constraints than their Tier I counterparts, remain tied to broker-provided EMSs.This may prevent such firms from fully digitalising their business and operational processes.
Saoirse Kennedy, GreySpark senior consultant and author of the report, said: “Investment managers are beginning to tackle digitalisation vigorously and multi-asset OEMS’, being central to trading, are the nexus of this process upheaval. As the industry advances risk management systems and transaction cost analysis systems will be drawn into consideration for integration into streamlined business and operational processes.”
For further information and to purchase copies of GreySpark’s research, please e-mail: [email protected]
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Notes to Editors
About GreySpark Partners
GreySpark Partners is a business, management and technology consultancy specialising in capital markets. GreySpark Partners works with investment banks, hedge funds and asset management firms to deliver solutions that work across all asset classes, with a particular focus on risk management and electronic trading. For further information, please visit: www.greyspark.com